What to contribute after max out Pretax 401k? MICROSOFT Fidelity

Apr 6 42 Comments

There's 2 other options in Fidelity which are
1. ROTH
2. AFTER-TAX (NON-ROTH)

What percentage should i put in? I don't need extra cash for expenses.

Also, what option to choose for
"in-plan coversion" vs "in-service withdrawal"

Already setup max on hsa, espp.

Base 158k

Thanks

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TOP 42 Comments
  • Virta Health
    s73hfw

    Virta Health

    s73hfw
    If you max out pretax, you cannot contribute to roth 401k. But you can do after tax 401k and convert (aka mega backdoor roth)
    Apr 6 18
    • Meta
      metamate™

      Go to company page Meta

      metamate™
      The main benefits of rolling it over to Roth IRA instead of Roth 401k are: (1) you'll be able to withdraw contribution and nontaxable conversions early without paying penalty and tax (if you never make any taxable conversions), (2) there might be more investment options available, and (3) there are no required minimum distribution when you get old.
      But usually if you invest for the long term, (1) would be irrelevant. (2) is also irrelevant if your 401k has BrokerageLink, (3) is also irrelevant if you roll over the funds from Roth 401k to Roth IRA after you retire.
      Apr 6
    • OP
      Thank mate, i actually dont think that far, i only invest in VTI and VXUS. So, to sum up i only need to put down the % in after tax (non roth) text box and choose convert in the drop down.

      Then call Fidelity to convert from after tax 401k to roth ira.
      Apr 6
  • Amazon
    Spacedaddy

    Go to company page Amazon

    Spacedaddy
    I assume you’re talking about an IRA? your income is above $144k you’re “technically” ineligible for a Roth IRA, but you have an option to do a “backdoor Roth”, which is what I do. That being said I’m assuming your employer doesn’t do that for you. If that’s the route you take, the max contribution for a tax year is $6k if you’re under the age of 50.
    Apr 6 7
    • OP
      I called Fidelity last week, they told me i can contribute 6k on top of whatever i contribute to after-tax? 😬 Maybe they were wrong?
      Apr 6
    • Virta Health
      s73hfw

      Virta Health

      s73hfw
      They were wrong or didn't explain jn depth. You can do backdoor roth of 6k on top of everything here
      Apr 6
  • Meta
    agent zero

    Go to company page Meta

    agent zero
    Do the following in order, for as far as you can go down the list:
    -max out pretax 401k
    -megabackdoor: max out after-tax 401k and do "in-plan conversation"
    -backdoor: contribute to traditional IRA convert to Roth IRA
    Apr 6 6
  • After tax 401k + IRA after tax. Benefit is when you take out money, you don't need to pay tax on principal amount.
    Apr 6 3
  • New
    NXQv67

    New

    NXQv67
    Never do Roth. Do traditional + after tax
    Apr 6 2